World 09.02.2024

Butter Fat Fraction Market is expected to rise at an 8.5% CAGR through 2034, Fact.MR

Source: The DairyNews
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In 2024, the global butter fat fraction market is estimated to be valued at US$ 153.2 million, with projections indicating a steady rise at an 8.5% Compound Annual Growth Rate (CAGR), reaching a market valuation of US$ 345.2 million by 2034.
Specialty fats and oils are gaining increasing popularity among consumers across various industries, including baking, confectionery, and dairy-based products. Butterfat fractions, known for their distinct qualities and flavor profiles, are often favored as premium ingredients.

As awareness of the health effects of dietary fats grows, consumer preferences are shifting towards better fat sources. Some butter fat fractions, such as clarified butter (ghee), are particularly sought after due to their reduced lactose and casein contents, making them perceived as healthier substitutes for traditional butter.

Key Takeaways from the Butter Fat Fraction Market Report:

· The North America butter fat fraction market holds 25.8% of shares in 2024.

· The East Asia butter fat fraction market holds 22.8% of shares in 2024.

· The ganglioside ingredient type segment occupied 43.83% of the market shares in 2024.

· The market size in the United States is projected to rise at a 9.4% CAGR through 2034.

· The market size in China is anticipated to develop at an 8.5% CAGR through 2034.

“The butter fat fraction market is poised for a revolutionary shift, propelled by evolving customer preferences, cutting-edge technology advancements, and pressing sustainability concerns. In addition to being well-positioned to weather market dynamics, businesses who proactively embrace these trends and promote a comprehensive approach to product innovation and market strategy will also prosper and take the lead in culinary evolution." Says a Fact.MR analyst.

Anticipated to undergo significant expansion, the North American butter fat fraction market, led by the United States, is expected to witness a robust 9.4% Compound Annual Growth Rate (CAGR) through 2034. Similarly, in the East Asian market, China is projected to take the lead with an impressive 8.5% CAGR through the same period.

In the United States, the demand for butter fat fractions is poised to surge at a notable 9.4% CAGR until 2034. This surge is attributed to evolving dietary preferences influenced by the low-carb and ketogenic diet movements, emphasizing the consumption of healthy fats. Butter fat fractions, particularly those with reduced lactose and glucose levels, are now sought after as key ingredients by adherents of these dietary regimens.

To tap into this growing market niche, companies strategically targeting the nutritional needs of health-conscious consumers following ketogenic and low-carb diets can offer products that align with their tastes.

China, in the East Asian region, is expected to witness a sales surge of butter fat fractions at an 8.5% CAGR through 2034. The country's rapidly expanding e-commerce landscape, primarily through online shopping platforms, provides a wide and easily accessible distribution route for butter fat fractions. Leveraging e-commerce platforms allows businesses to reach a large consumer base, especially in less accessible cities. The butter fat fraction market is flourishing due to the convenience of online purchasing and the availability of a diverse range of quality and imported components. Strategic alliances with e-commerce platforms and targeted digital marketing campaigns could further enhance market awareness and reach in China.
Aaron Smith
Aaron Smith
Professor of Agricultural and Resource Economics at the University of California
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Dr. Sylvain Charlebois
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February 2024
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